Repatriation of profits and dividends of multinational companies operating in Pakistan reached close to $1.5 billion during the first 10 months (July-April) of this fiscal year, the State Bank of Pakistan (SBP) stated.
The SBP reported that repayment on FDI during the period under review was $1.138 billion, much higher than $962 million during the same period of the last fiscal year. Besides, $317 million was paid on foreign portfolio investment; the amount was just $224 million a year ago.
What kind of investment is more profitable in the country can also be seen from the inflows and outflows from Pakistan. Investors from Arab countries had the biggest foreign investment in the financial business (banking) sector. The second highest outflow was from the telecommunications sector as the amount of reverse remittances reached $163 million while FDI during this period was $72 million. The outflow from oil and gas exploration rose to $102 million while the inflow as FDI during this period was $234 million.
Thermal power, which attracted $123 million as FDI, sent abroad $155 million as profits and dividends. The petrochemicals painted a dismal picture as the sector witnessed a net disinvestment of $136 million during the period. International food chains have shown rapid growth in the country and their profitability is much higher than in many countries as they sell their products at comparatively higher prices in Pakistan.
Profits and dividends sent abroad from the food sector during the 10 months reached $82 million. This was only repayment on FDI while $2.5 million went abroad from this sector as foreign portfolio investment (FPI).